Brent crude advanced in early trading, gaining just over 1% to around $66 a barrel. This rise came on the heels of a weekend marked by one of the heaviest air strikes in Ukraine in recent years, leaving casualties and fuelling expectations of tougher sanctions on Russian oil. The rally was notable given that only days earlier, crude had slipped more than two per cent following weaker-than-expected US employment data that cast doubt on demand prospects. Investors now face a complex picture where demand softness collides with supply disruption and deliberate production strategy.
At the centre of this recalibration is OPEC+, which confirmed it will lift output again from October. The increase, however, is intentionally modest. Whereas recent months brought increments of over 400,000 barrels per day, the latest decision pares this back to around 137,000 barrels daily. The message is clear: Saudi Arabia, backed by key allies, is reasserting market presence without flooding the system. Russia’s position within the group adds another layer, as sanctions risk tightening its capacity to contribute, leaving Gulf producers with greater leverage to shape outcomes.
The wider equity landscape reflects this same pattern of restrained optimism. London’s FTSE 100 found support in energy names and defensive plays, while broader indices remained steady rather than exuberant. Companies tied to commodities, defence and housing all gained modest traction, reflecting how investors are leaning into selective resilience rather than chasing wholesale recovery. In this climate, energy pricing acts as both anchor and catalyst, shaping sentiment across sectors.
Union Jack Oil plc (LON:UJO) is an oil and gas company with a focus on onshore production, development, exploration and investment opportunities within the United Kingdom and the United States of America hydrocarbon sector.
